1. 44 BUSINESS FOCUS ON POLAND
Chadi Chidiac, managing partner of
PROTOCOL hospitality management
and consultancy shares insights on the
Polish markets
Market profile
Warsaw, with a population of 1.7 million
and a GDP per capita reaching Eur 28,000,
and with a cost of living of around Eur 950/
month, yields a healthy disposable income of
approximately Eur 1,380. This is boosted by
the 8.5 million tourists, including 2.8 million
foreign tourists who increased occupancy
rates to around 60.3 percent; matching the EU
average of 60.85 percent.
Supply by concept
A recent study by PROTOCOL in early 2014
showed that Warsaw numbers approximately
1,258 restaurants offering 133,000 seats. While
dominated largely by European concepts ethnic
cuisine units number 292, with 130-strong
Italian restaurants. International concepts and
coffee shops also have a strong presence, with
79 outlets. A weak presence of international
chains was recorded.
Average check repartition
The same PROTOCOL study showed that
Warsaw’s restaurants charge a relatively
lower guest check average (GCA) than any
other Western European capital. There are
GCA Distribution
Warsaw:
a hidden
potential
Source of all graphs: PROTOCOL
Supply by Concept
numerous restaurants around the old town
square and along the "royal route", but many
of these are expensive. There are some great
finds in the diplomatic quarter, Powišle, and
Praga neighborhoods. PROTOCOL grouped
average checks findings into three pricing
tiers: Eur 7.5 to Eur 18, Eur 18 to Eur 30, and
over Eur 30. The first tier was recorded in 45
percent of the operating units, 40 percent
of restaurants within the Eur 18 to Eur 30
bracket, and 15 percent for the over Eur 30

2. 45
Description Avg Cost PLN Avg Cost
Wet works
FFE
SOE
Kitchen Equipment
Storage
Sound & Light
Dining Room Equipment
Signage
Shop Fitting
Sub-Total
PLN 198,720.00
PLN 103,500.00
PLN 22,770.00
PLN 144,900.00
PLN 41,400.00
PLN 18,630.00
PLN 103,500.00
PLN 14,490.00
PLN 10,350.00
PLN 459,540.00
48,000.00
25,000.00
5,500.00
35,000.00
10,000.00
4,500.00
25,000.00
3,500.00
2,500.00
159,000.00
Startup Cost
Wojciech Amaro
Warsaw’s restaurants
charge a relatively lower
guest check average
than any other Western
European capital
Top-rated Warsaw restaurants
Restaurant
Atelier Amaro
Amber Room
Pod Gigantami
AleGloria
Belvedere
Michel Moran –
Bistro de Paris
Platter by Karol Okrasa
Polska Rózana
San Lorenzo
Tamka 43
Concept
Concept 13
Dom Polski
La Rotisserie
Rozbrat 20
U Fukiera
Butchery & Wine
Boathouse
Merliniego 5
Qchnia Artystyczna
U Kucharzy
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
bill. Warsaw has a low ratio of 0.07 per capita
or around 12 individual per seat-day excluding
tourists. This is considering 10 percent of the
Eur 1,380 monthly residual income channeled
for eating out by 1.7 million, the same as a
restaurant bill size of around Eur 235,000,000
spread over 1,258 restaurants yielding around
Eur 187,000 per unit per month.
Epicurean epicenter
Warsaw has become the epicurean epicenter
of Poland. If you need a quick bite try a
zapiekanka, a 'Polish pizza' made up of half a
stale baguette split lengthwise and topped with
melted cheese, chopped mushrooms, ketchup.
Poland's first restaurant to receive Michelin's
Rising Star award guides its guests through a
modern version of Poland's culinary traditions.
Its top chef and owner, Wojciech Amaro,
created his auteur restaurant after 20 years
of searching for exquisite products all over
Europe. Working for top world restaurants
– Le Meurice in France or El Bulli in Spain,
both of which have 3 Michelin stars – have
made him believe that good quality and local
ingredients are key.
He says the chef's talent and vision lie lower
down on the priority list. "I've travelled around
Poland for a year and half, preparing myself
for the creation of my Atelier and searching
for the best foods possible," Wojciech
Amaro told PROTOCOL. In 2013, Michelin’s
recommendations got 40 restaurants in
Poland – 21 restaurants from Warsaw and
19 from Krakow. All listed restaurants,
regardless of their star-status, receive another
designation – "fork and spoon", as a subjective
reflection of the overall comfort and quality of
the restaurant.
Startup investment
Investing in Warsaw’s restaurant business
might be a good idea. Paying a higher lease is
worthy in exchange of a prime location for a
good return potential. A lucrative investment
should target concepts with a lower start-
up cost selling fast moving goods with high
CM yielding higher gross profit. Investors
should look for operations with minimum
overheads though requiring less return-per-
seat or per-square-meter per year to break
even. Investments should go for a less labor-
intensive operation, thus requiring less skilled
personnel and lower payroll though transferring
to a lower labor cost. A startup budget for a
140-seater full-fledged menu in Warsaw might
be a good investment needing a relatively
low startup budget allocation of around PLN
459,540.00, equivalent to Eur 159,000.00.
Consensus
Warsaw has come a long way fast, and
nowhere is the urban vibrancy more apparent
than in the city's progressive culinary
scene. Today one can find worldwide quality
dining experiences. As the Polish palate is
developing, so too is the service industry,
though incompetent service is still far too
common. On the other hand, findings also
showed that some venues have closed and
others will close their doors if business is
slow. Some 'resto-bars' employ different sets
of hours for bar and kitchen and/or some
other operators might rely on menu prices
adjustment to save their margins and sustain
their businesses.
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